Tracking 2011 Q1 Moves by Seth Klarman and Bruce Berkowitz

Being a value investor, I always take great interest to see what long-established value gurus like Seth Klarman and Bruce Berkowitz are doing with their portfolios. While 13F-HR filings are incomplete snapshots at best as they detail no information on bonds, foreign stocks and other esoteric asset classes, some insight may still be gleaned from examining what these money managers are doing and perhaps even a new investment idea can be found.

Seth Klarman may be the most enigmatic of the renown value investors. Klarman wrote an infamous book on value investing called “Margin Of Safety” which is now out of print and fetches hundreds of dollars second-hand. With an excellent track record of outperformance that stretches over decades, Klarman’s Baupost Fund is a recognized bastion of outstanding investing. Whereas many value investors profess a love of simplicity when seeking investment opportunities, Klarman craves complexity to help weed out the competition. While investors such as myself prefer established free cash flows selling at discounts, Klarman seemingly prefers hidden balance sheet values that don’t jump out on cursory examination. Of all the professional investors I follow, Klarman’s filings are often the least scrutable due to this philosophy.

  • For the first time in over four years since I have monitored its filings, Baupost opened a position in a gold mining stock, Allied Nevada Gold (ANV). Klarman has expressed concern over the US fiscal situation …

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